Released on: August 27, 2008, 4:28 pm

Press Release Author: Thomas R. Cutler

Industry: Software

Press Release Summary: AS411.com Looks at Measuring Manufacturing Performance

Press Release Body: There are a number of costs that have nothing to do with
productivity that may be out of control during the month. For thirty years
Optimation® has been the world leader in Part Nesting for Optimized Material and
Labor utilization. Consistently providing product advancement leadership to
industry, the company's new Nesting Technology, AxiomVE make previous nesting
methods obsolete. The new technology, Vision EmulationT, allows the system to
"see" the shape of parts, just as human eyes would view them. When a person looks
at a part, they see the whole shape and any special features on the part. This
information is then used to determine if the part will fit in an area of the nest.
Vision Emulation eliminates excessive trial and error as well as excessive rotation.



Measuring Manufacturing Performance: How Each Part Contributes to Profitability is
the title of a feature article authored by manufacturing journalist, Thomas R.
Cutler. Appearing in Accounting Software 411
(http://www.accountingsoftware411.com/Press/PressDocView.aspx?docid=10048), Cutler
suggested, "The cost of measuring manufacturing performance is a vital element to
bottom-line profitability, yet too often secondary standards have mislead CFO's and
caused many wrong decisions."

According to Michael D. Lundy P.E. and President of Blue Springs, Missouri-based,
Optimation, "The most important standard is to know how each part produced
contributes to the profitability of the company." All businesses make measurements
which are intended to tell management about the performance and health of the
business. Often these measurements are secondary standards such as square feet
produced, tons shipped, contracts signed, or units shipped. CFO's and Finance
Managers use these measurements with a false sense of security that they are
actually managing the company well. Too often one can hear a manager say, "I do not
understand why profits are down.the measurement of 'X' indicated that we would have
a good month."
The measurement in question was not designed to reflect the profitability of the
company which is the reason for this confusion. One metric frequently measure is
pieces-per-hour, a rate measurement designed to measure efficiency of a machine or
group of machines. Lundy asserts, "There are many reasons why an increase in
pieces-per-hour may not cause an increase in profit. The first is the sales price
and therefore contribution may be lower for the product mix produced during the
month. Another is that raw material may cost more."
Optimation offers benchmarking against any other method of part nesting; recent
benchmarks have show improvements up to 15% in material efficiency alone. As lean
efficiencies are essential, the most advanced nesting technology guarantees the most
important parts are always nested in the next available machine, providing advanced
information to integrated costing, labor reporting, and material inventory systems.
Because Optimation is strong financially and has the most advanced technology; the
company offers direct financing from its own capital resources.

Optimation
www.optimation.com
Michael D Lundy P.E.
Opti1@optinest.com
877-827-2100


Web Site: http://www.optimation.com

Contact Details: Optimation
704 NW Mock Street
Blue Springs, MO 64015
816-228-2100